GM achieves profitability on EVs

General Motors has announced that it is finally making money on its EVs. This means that the automaker is generating a positive gross profit on its EVs for the first time - a huge step toward the industry's goal of making EVs profitable and at scale.

GM's achievement is notable because EVs have generally been unprofitable for most automakers in their early stages due to the high costs of batteries and research and development. GM's push to lower material costs, build up its in-house battery operation, and improve production efficiency seems to be paying off.

The automaker's EV sales have also been strong, with GM doubling its EV market share in 2024. GM sold about 114,000 EVs in the US last year, making it one of the few automakers to cross the 100,000 mark. GM now has about 13% of the US EV market. For now, the automaker's profits still overwhelmingly come from its gas-powered trucks and SUVs, and there is no guarantee GM can maintain its EV profitability as it ramps up production.

GM is also facing a changing political landscape, with a new White House administration that may be less supportive of EVs than the previous one. GM has expressed concerns about the potential loss of EV tax credits and other incentives, as well as potential tariffs on goods made in Mexico and Canada.

All these challenges aside, GM is actually optimistic about the future of its EV business. The company plans to increase its EV production to 300,000 units in 2025 and plans to expand its EV lineup.

Via